- Indian government representative confirms resumption of debate on the legality of Bitcoin and cryptocurrencies.
- Ministries and presidential cabinet will have to approve a note on the legal framework for cryptocurrencies that will prohibit its trade.
A report by Moneycontrol appears to confirm the return of illegal trading for Bitcoin (BTC) in India. The report cites an Indian government representative without revealing his identity. The representative confirmed that a note has been delivered to the related ministries for “internal discussions”. In addition, the representative of the Government of India also confirmed that prior consultations have taken place between the Ministry of Information, Finance and other related ministries along with the Central Bank of India (Reserve Bank of India, RBI).
The aim of the discussions is to create a legal framework that will definitively ban trading with Bitcoin, Ethereum, XRP and any other cryptocurrency. According to the representative of the Government of India:
There was a view in the government that banning it through a law would be more binding. It will clearly define the illegality of the trade. We have forwarded a note to related ministries for inter-ministerial discussions.
Future of Bitcoin (BTC) in India
Although the representative of the government of India did not specify when a measure for banning trade in cryptocurrencies could be implemented, he confirmed that the government will seek to open the discussion in parliament when it resumes activities. The representative of India stated:
We are working on it. After inter-ministerial consultations, it (the note) would be presented to the cabinet for approval. Once Parliament resumes for the session, we are hoping to get it ratified.
However, It is necessary to wait and see how things develop. A possible ban on Bitcoin (BTC) has been reported in the past. Also a similar note has even been reported in recent months, but the discussion does not seem to find room in India. In a note from another media outlet in June, it was confirmed that India has spent months preparing a possible ban on trade for cryptocurrencies. At least since that time, the Indian government has been in internal consultations.
However, there has been speculation about the feasibility of re-introducing a new law to prohibit trade in cryptocurrencies. As reported by CNF, India has had a ban on Bitcoin trading since 2018. Imposed on the basis of a ban by the Reserve Bank of India (RBI), the ban was lifted in March this year. At that time, expectations were positive as the market opened up to receive 1.2 billion people in India.
Since then, the market has changed. According to the Crypto Kanoon platform, co-founded by Mohammed Danish, a ban will bring brain drain, increased untraceable transactions, increased risk of money laundering, benefits for foreign companies that will receive money from Indian investors, loss of tax revenues. Danish added:
If the govt. decides to pass a law banning crypto, this law can be challenged by crypto business, traders, or enthusiasts based on various rights available to them under the Constitution.